Here's the question you clicked on:
TheDumDum
Find the missing information Original value: 24,500 annual growth factor: 1.06 annual growth rate: time frame: 5 years new value:
might help to include what this pertains to
growth factor and growth rate are synonomous to me, so im not sure what the distinctions would be.
is the rate in terms of money by chance?
P(1+rate) where 1+rate is a factor to im assuming the rate is just the .06 part; say 6% ?
I don't know I was absent for a week due to the flu and my teacher just gave me all this work and I don't no how to do it, I was hoping there would be a formula to this or something
you should have some material that you study from, a textbook or something?
im assuming here that factor and rate are related
no we don't have one we take notes in class but I wasn't there to take notes cuz I was sick
since the factor is: 1.06 and the factor can be written as: (1+ rate) would you agree that the rate is .06, or 6%?
i might if i new how u got that answer
they give you the factor as 1.06 in the information already
o ok that makes since lol sorry
now the end solution depends on how we are determining the interest rate. simple interest and compounded interest are 2 different beasts. and give 2 different answers.
ok im following you so which one do we use to find the new value
dunno, its not stated in the post that you presented us. That information is prolly either part of the material from which you are spose to be studying from, or you skipped over it while typing in the question
i typed the full question, but i have one side question to help me better understand this stuff, if the annual growth rate was 1% would that mean the annual growth factor is 1.01
that would seem a reasonable assumption to me :)
ok well you have been a lot of help thank you for your time
your welcome if you dont know the kind of interest; you can present both forms and ask the teacher which one it was talking about,
simple interest is a simple formula: Prt just multiply the starting value by the rate and the time given. in your case: $*.06*5 = new value compound interest can be tricker;\[P(1+\frac rn)^{nt}\] r is the rate, n is the number of times a year the interests is adjusted, and t is the number of years since your problem gives an annual rate, I would assume n=1 in this case. \[P(1+.06)^5=new~value\]